The current environment of high energy prices, negative real interest rates and sharply rising asset prices induces drastic redistributive effects

We look at the current situation in the euro zone: rising inflation due mainly to the rise in energy prices, very low nominal interest rates and, as a result, highly negative real interest rates; companies able to pass on costs to their prices; and sharply rising asset prices (equities, real estate, corporate value), beyond the short-term effects of shocks, thanks to negative real interest rates. This situation gives rise to major (income) redistributive effects: At the expense of households, in particular low-income households; But not at the expense of companies; At the expense of bond and loan creditors; In favour of holders of equities, real estate, etc., who are ultimately high-income households. These r edistributive effects therefore clearly pose an equity problem.